presentation to eoa conference 10 may 2012 global equity plan administration – best practise,...
TRANSCRIPT
Presentation to EOA Conference10 May 2012
Global Equity Plan administration – best practise, common mistakes and current trends
2
The Regulatory Landscape
3
Number of Plans in Operation
4
Participant Numbers By Country
5
Percentage of the Labour Force that Participate
6
UK Participation Numbers Per Plan
7
UK Trends in Plan Types
8
US Current Trends
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
IncentiveStock Options
Non-qualifyingOptions
StockAppreciation
Rights
RestrictedStock
RestrictedStock Units
9
US Option Plans Changes
Type of Change Percentage of Companies
Reduce the number of employees receiving options 48%
Reduce the total number of options granted 44%
Replace some/all options with restricted stock 33%
Replace some/all options with performance based stock 19%
Replace some/all options with long term cash incentives 13%
Replace some/all options with stock appreciation rights 5%
Replace some/all options with shares 1%
Other change 8%
10
US ESPP Trends
0%
10%
20%
30%
40%
50%
60%
70%
80%
3% or lesscontributed
3 - 5 % 5 - 8% Over 8%
Employee
Manager
Executive
11
ESPP Trends
Type of Change Percentage of Companies
Eliminate the “look-back” feature 26%
Reduce the discount on stock purchase 24%
Eliminate the plan entirely 17%
Other 7%
12
Australian Global Plans – Countries Participating in the Plan
47
48
49
50
51
52
53
54
55
56
2006 2007 2008 2009 2010 2011
13
Australia – The Number of Plans that Companies Operate
12
34+
2009
2010
2011
0%
10%
20%
30%
40%
50%
60%
2009
2010
2011
14
Employee Plan Types Used in Australia
TE FreeTE SalarySacrifice TD Salary
Sacrifice Other
2009
2010
2011
0%
10%
20%
30%
40%
50%
60%
70%
2009
2010
2011
15
Executive Plan Types - Australia
RightsOptions
SharesOther
2009
2010
2011
0%
10%
20%
30%
40%
50%
60%
16
How to Make Your Plan Successful
Determination about global/local focus
Decision about whether shares are important
Translation – is this required
Plan champions
Communication and engagement channels
17
Common Mistakes
Eligibility data
Withholding tax and detailing with it immediately
Management of forfeited shares
Terminations
Taxation – understanding your employees, international assignees
Discussion